The offshore yuan remained steady around 7.24 per dollar as investors weighed the latest batch of economic data and awaited further details on Beijing's newly announced stimulus measures.
Offshore yuan steady ahead of stimulus details
Over the weekend, China introduced a special action plan aimed at boosting consumption and stabilizing stock and real estate markets, reinforcing recent government commitments to shore up demand amid escalating risks from President Trump’s trade tariffs. The plan includes targeted policies to raise household incomes, stimulate spending, and encourage higher birth rates in an effort to support long-term economic growth.
At the same time, traders digested a mix of economic indicators that painted a complex picture of China’s recovery. Retail sales surged 4% year-on-year in the first two months of 2025, marking the fastest growth since October and signaling resilience in consumer activity. Industrial production also exceeded expectations, expanding 5.9% and suggesting a steady pace of manufacturing growth.
Further factors influencing the currency
However, lingering concerns about labor market conditions emerged as the surveyed unemployment rate climbed to a two-year high of 5.4% in February, up from 5.2% in January and surpassing market forecasts of 5.1%. The rising jobless rate underscores challenges in achieving sustainable economic momentum, particularly as external trade uncertainties and structural imbalances continue to weigh on business confidence.
With Beijing's latest stimulus efforts yet to be fully detailed, investors are closely monitoring any additional policy signals, especially regarding fiscal support and monetary easing, to gauge the effectiveness of China’s response to domestic and external pressures.
